Transcorp Hotels suffers N8.98bn loss as revenue halves
Transcorp Hotels Plc has reported a loss before tax of N8.93 billion for the 2020 financial year, compared to a profit of N1.12 billion a year ago.
The company posted a loss after tax of N8.98 billion last year, compared to a profit of N613.74 million in 2019, according to its unaudited financial statements obtained by Markets Reporters from the Nigerian Stock Exchange.
Its revenue plunged by 50.25 per cent year-on-year to N10.15 billion from N20.40 billion due to the impact of COVID-19.
Transcorp Hotels said it started the year 2020 optimistic with detailed plans and budget to surpass the N20bn revenue performance achieved in 2019.
It noted that Nigeria witnessed increase in confirmed cases of COVID-19 which led to closure of airports and flights and an official lockdown of the Federal Capita Territory issued by the Federal Government to ensure the effective combat of the virus.
It said, “All these negatively impacted the hotel and its business activities throughout the year.
“With the ease of lockdown and resumption of domestic flights from 8th July, we have seen significant pick-up in occupancy and improvement in all our business segments, with our outlets opened and fully operational.”
The hotel said it witnessed a remarkable recovery in the third and fourth quarters, with monthly occupancy rising to a high of 55 percent in December compared to 10.9 percent in June.
It said, “The revenue performance in December was an impressive N1.2 billion, coming up to 75 per cent of the previous year’s performance for the same period, despite the current market predicament.
“The company’s management will continue to implement several precautionary measures to ensure the safety and security of all its guests and team members against COVID-19 virus. We also continue to explore other opportunities the pandemic presents in order to minimise the impact on our operation.”
Transcorp Hotels, a subsidiary of Transnational Corporation of Nigeria Plc, is the owner of Transcorp Hilton Abuja and Transcorp Hotels Calabar.
